The County Board last night directed the County Manager to reduce the tax rate in its Fiscal Year 2015 budget from $1.006 per every $100 in assessed value to $0.996.
That penny corresponds to about $6.6 million in reduced revenue for the county. However, the tax and fee burden on the average Arlington taxpayer will still rise about 4.6 percent, thanks to an increase in property assessments and increases in solid waste and water-sewer fees.
Arlington Has Highest Tax Burden for the Poor — Arlington County has the highest tax burden for low income people in the D.C. area, according to a new study. In response, County Board Chair Jay Fisette suggested that the higher taxes go to providing more services, like affordable housing and better public schools, compared to other jurisdictions. [WAMU]
Op-Ed: Lower The Tax Rate — Local fiscal watchdog Wayne Kubicki says that the the County Board should reduce the property tax rate by 1.5 cents by utilizing part of the $37.1 million in unspent funds left over from Fiscal Year 2014. Kubicki suggests calling the tax rate reduction a “Vihstadt Dividend.” [InsideNoVa]
Hope, who’s one of 10 Democratic candidates running for the congressional seat of the retiring Rep. Jim Moran (D-Va.), said he supports the budget put forth by the Congressional Progressive Caucus, which raises taxes on Americans making more than $250,000 per year and creates a new, higher tax bracket for those making more than $1 million. It would also close corporate tax loopholes and tax individuals making more than $100 million annually at 48 percent.
The budget also would eliminate the tax difference between long-term capital gains income and regular income from salaries and wages. It also would reverse the effects of the sequester, which would mean more jobs for federal workers. Hope circulated a petition trying to draw support for what he calls the “Millionaire’s Tax,” and said he gathered 33,000 signatures.
Lubber Run Neighbors Rally Against Housing Proposal — Those who live around the Lubber Run Community Center showed up to the Saturday Arlington County Board meeting to rally against a proposal to use the public land around the community center for affordable housing or a new school. The residents also asked the Board to approve a renovation to the community center. [Sun Gazette]
Board Approves Expanded ‘Technology Zones’ — The County Board on Saturday approved an expansion of its program of reduced business license taxes for technology businesses in certain “technology zones.” About 5-10 businesses per year are expected to qualify for the tax incentives. [Arlington County]
Torrez Murder Trial Begins — The murder trial of Jorge Torrez, the ex-Marine accused of killing Navy petty officer Amanda Jean Snell on Joint Base Myer-Henderson Hall, has gotten underway. Torrez is already serving multiple life sentences after being convicted in Arlington of rape and numerous other charges. [Washington Post]
Anti-Streetcar Group Blasts County Study — The group Arlingtonians for Sensible Transit has released a list of the “top 15 reasons” a county-funded study on the costs and benefits of a streetcar system is “another waste of taxpayers’ money.” AST says the study is biased and lacking in original research. [Arlingtonians for Sensible Transit]
Rep. Jim Moran (D-Va.) hosted an information briefing this morning on how low-income residents can file their taxes for free.
At the new Arlington Mill Community Center, Moran spoke briefly to a crowd of representatives from local nonprofits like Offender Aid and Restoration, AHC and from staffers at Arlington’s Department of Human Services, extolling the benefits of FreeFile, the free tax filing available to those who make $58,000 a year or less.
If you haven’t already, it’s time to get down to business and start filling out those forms. Luckily, if you have any last-minute tax questions, local tax guru Bobby Grohs is back today to offer some free advice.
Grohs, a Certified Public Accountant and University of Maryland grad, started Arlington-based Tax Matters LLC in 1998. He specializes in “comprehensive tax and consulting services for clients ranging from individual taxpayers, small businesses and nonprofits located throughout the greater Washington metropolitan area.”
Opinions Split at Tax Hearing — The Arlington County Board’s public tax hearing last night was relatively short, about 30 minutes. Among the fewer than 10 speakers, opinions were split between those who want taxes to remain the same and those who want the tax rate to be lowered. [InsideNoVa]
GMU Pepper Spray Suspect Identified — The man who pepper sprayed a George Mason University law professor at the school’s Arlington campus on Wednesday has been identified as 31-year-old Jonathan Pendleton of Alexandria. The professor has been identified as economist and blogger Tyler Cowen. Pendleton left threatening comments on Cowen’s blog before the attack. [Huffington Post]
The hearing will start at 7:00 p.m. at the Arlington County Board offices at 2100 Clarendon Blvd. Residents can sign up to be one of the speakers commenting on the tax rate at the hearing.
County Manager Barbara Donnellan has proposed holding the property tax rate steady at $1.006 for every $100 in assessed value. Because the County Board advertised no change to the tax rate, it can now only set a tax rate at or below the current rate.
Currently, technology firms located in the Rosslyn-Ballston corridor, Crystal City, Columbia Pike and Shirlington only have to pay 50 percent or less of the county’s standard business license tax rate, 36-cent per $100 of gross receipts. For tech companies with between 500 and 999 employees, the rate is 14 cents. For tech companies with more than 1,000 employees, it falls farther to 10 cents.
Tech companies located along the Pike or in Shirlington have no minimum for the amount of employees to qualify for the reduced tax rate. However, in the R-B Corridor and Crystal City — the county’s two “Downtown Technology Zones” — tech firms must have at least 100 employees to pay the 18-cent rate. The County Board could approve waiving the minimum at its meeting this Saturday.
County staff is projecting that Arlington will collect $20.8 million more in taxes than originally budgeted for, led by a $23.4 million increase in real estate tax revenue. Another bright spot an additional $3 million from personal property taxes. The increases are due to higher-than-expected real estate assessments and strong new car sales and used car values, according to Donnellan.
Some county revenue is lower than expected, however. Sales taxes are projected to be down $2.6 million, hotel taxes are down $2.1 million, fines are down $2 million and cigarette and communication taxes are both down $300,000.
The county said Friday evening that it will take a look at “all commercial real property assessments with a 50% or greater increase from calendar year 2013.”
There are nearly 90 such properties, including Rien Tong restaurant (3131 Wilson Blvd), which saw its assessment increase 197 percent, and Spider Kelly’s (3171 Wilson Blvd), which saw its property valuation increase 83 percent.
